- Analytics
- News and Tools
- Market News
- Fed Preview: Three scenarios and their implications for BDXY – TDS
Fed Preview: Three scenarios and their implications for BDXY – TDS
Economists at TD Securities discuss the Federal Reserve Interest Rate Decision and its implications for the Bloomberg Dollar Spot Index.
More hawkish (20%)
Fed delivers a pause while also strongly hinting at the possibility of an additional rate increase before year-end. Chair Jerome Powell emphasizes the strong rebound in output in Q3, while also downplaying the upcoming shocks to the economy in Q4, judging them as temporary. BDXY +0.20%.
Base case (70%)
Fed delivers another hawkish pause after staying on hold in September, with the Committee leaving the door open for an additional rate increase. That said, the FOMC will repeat that it aims to ‘proceed carefully’ as it formulates the next steps for policy, also highlighting its increased data dependence. We expect Chair Powell to underscore that while macro data since the Sep meeting has turned out unambiguously firm, the Fed can afford to be patient as it gathers more data. BDXY +0.10%.
Dovish (10%)
Fed pauses but signals less need for further rate hikes given the recent tightening of financial conditions (and downplays the Sep dot plot). Powell mentions that the best course is to be patient given the totality of policy tightening still in the pipeline, the ongoing reduction of credit supply, and the upcoming shocks that will dent output in Q4. BDXY -0.50%.
© 2000-2025. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
